VCC (Variable Capital Company)

The Monetary Authority of Singapore is Singapore’s central bank and integrated financial regulator, responsible for licensing and supervising all fund management companies, securities intermediaries, and financial institutions operating in Singapore. MAS administers the Securities and Futures Act (SFA) under which fund managers are licensed or registered.

An LFMC holds a Capital Markets Services (CMS) licence from MAS to conduct fund management activities in Singapore. LFMCs are subject to comprehensive regulatory requirements including minimum base capital of S$250,000 (or S$1 million for retail-facing managers), ongoing compliance, risk management, and audit obligations. This licence is required for managers serving retail investors or managing assets above the thresholds applicable to RFMCs.

An RFMC is a fund management company registered (rather than licensed) with MAS, permitted to manage assets for up to 30 qualified investors with total AUM not exceeding S$250 million. RFMCs benefit from a lighter regulatory framework compared to LFMCs, making this an accessible entry point for emerging GP teams setting up in Singapore while still being subject to MAS oversight and anti-money-laundering requirements.

The Section 13R scheme (previously known as 13CA, renumbered in the 2022 Income Tax Act revision) provides tax exemption on specified income derived from designated investments by an approved fund managed by a Singapore-based fund manager. It applies to funds structured as companies and requires MAS approval, a minimum fund size of S$20 million at the point of application, a local investment spending commitment, and annual reporting to MAS.